The Trump administration has announced (and delayed, and re-announced, and delayed again) 25-percent tariffs on goods from Canada and Mexico and an additional 10-percent tariff on goods from China. Tariffs will make various goods more expensive for U.S. consumers and businesses, and over 40 percent of U.S. imports come from either China, Canada, or Mexico. Moreover, some experts believe that tariffs will shrink the U.S. economy overall. Analysts expect that the food and energy sectors may be particularly hard-hit by these tariffs. In a time when families are struggling with high costs across the board, and child care providers operate on razor-thin margins, tariffs will threaten the economic security of working families and providers, making America’s child care crisis even worse.
The Impact of the Tariffs on Families
Higher grocery prices could push child care even further out of reach for families struggling to find affordable care in the first place. Data from Stanford’s RAPID Survey Project found that in December 2024, one in three families were experiencing at least one form of material hardship, whether in food, housing, child care, or medical costs. Families are already struggling and higher prices will only worsen stress and material hardship.
“[My biggest challenge is] making ends meet and having what we need. Also, affording food. Food stamps aren’t lasting for the month anymore and the food pantry is too far away to afford gas to get there.”
A parent in Pennsylvania
“We starve ourselves so our children can eat properly.”
A parent in Indiana
American families need help with the high cost of living. When child care costs exceed the cost of a mortgage in most states, and as the cost of groceries continue to increase, tariffs will make family budgets harder, if not impossible, to balance. In the richest country in the world, parents shouldn’t need to starve themselves so their children can eat. And when child care is not a choice but a necessity, given that more than two-thirds of children have all their parents working, families need an economy and society that makes it easier to afford basic needs while having affordable care that keeps children safe. Higher tariffs on Canada and Mexico will make it harder, not easier, for families to meet this goal.
Impacts on Providers
For providers who already operate on razor-thin margins, higher costs for food and energy will also squeeze tight budgets. Supplies (including food and learning materials), rent, mortgage, and utility bills can make up one-quarter of a child care program’s operating costs.
Over half of providers reported having to raise tuition in the past year, yet they also face underenrollment due to the high cost of tuition.
As a recent survey from the National Association for the Education of Young Children shows, in the beginning of 2025, one in three providers have experienced higher rent costs, and nearly half of providers reported higher insurance costs. As a result, over half of providers reported having to raise tuition in the past year, yet they also face underenrollment due to the high cost of tuition. An increase to the cost of food or energy from tariffs would compound providers’ challenges and put unnecessary stress on a fragile industry.
“Food costs concern me and we usually run low. We make too much to qualify for any assistance yet we struggle to pay for food after all the bills are paid and usually end up charging it which then leads to more anxious nervous feelings because now I have to pay that off before interest is tacked on. I also have a lot of medical bills that have gone to collection because I just don’t have the money to pay it and choose to pay for food instead.”
A center director in Ohio
Child care providers are essential to the U.S. economy, facilitating the labor force participation of millions of parents across the country. Threatening this sector puts unnecessary and harmful pressure on the many workers, many of whom are women and women of color, that support economic growth for the United States.
Looking Ahead
The American economy must center the well-being of U.S. families. Higher tariffs will not serve the interests of most families, but especially of families with young children and the child care providers who are tasked with caring for them. Families of young children and our care workforce are some of the most economically vulnerable members of U.S. society. The federal government should be working in their best interests to support future generations of Americans, and these tariffs are counterproductive to those goals.
Tags: child tax, childcare, child care crisis, tariffs
Higher Tariffs May Worsen Child Care Struggles
The Trump administration has announced (and delayed, and re-announced, and delayed again) 25-percent tariffs on goods from Canada and Mexico and an additional 10-percent tariff on goods from China. Tariffs will make various goods more expensive for U.S. consumers and businesses, and over 40 percent of U.S. imports come from either China, Canada, or Mexico. Moreover, some experts believe that tariffs will shrink the U.S. economy overall. Analysts expect that the food and energy sectors may be particularly hard-hit by these tariffs. In a time when families are struggling with high costs across the board, and child care providers operate on razor-thin margins, tariffs will threaten the economic security of working families and providers, making America’s child care crisis even worse.
The Impact of the Tariffs on Families
Higher grocery prices could push child care even further out of reach for families struggling to find affordable care in the first place. Data from Stanford’s RAPID Survey Project found that in December 2024, one in three families were experiencing at least one form of material hardship, whether in food, housing, child care, or medical costs. Families are already struggling and higher prices will only worsen stress and material hardship.
American families need help with the high cost of living. When child care costs exceed the cost of a mortgage in most states, and as the cost of groceries continue to increase, tariffs will make family budgets harder, if not impossible, to balance. In the richest country in the world, parents shouldn’t need to starve themselves so their children can eat. And when child care is not a choice but a necessity, given that more than two-thirds of children have all their parents working, families need an economy and society that makes it easier to afford basic needs while having affordable care that keeps children safe. Higher tariffs on Canada and Mexico will make it harder, not easier, for families to meet this goal.
Impacts on Providers
For providers who already operate on razor-thin margins, higher costs for food and energy will also squeeze tight budgets. Supplies (including food and learning materials), rent, mortgage, and utility bills can make up one-quarter of a child care program’s operating costs.
As a recent survey from the National Association for the Education of Young Children shows, in the beginning of 2025, one in three providers have experienced higher rent costs, and nearly half of providers reported higher insurance costs. As a result, over half of providers reported having to raise tuition in the past year, yet they also face underenrollment due to the high cost of tuition. An increase to the cost of food or energy from tariffs would compound providers’ challenges and put unnecessary stress on a fragile industry.
Child care providers are essential to the U.S. economy, facilitating the labor force participation of millions of parents across the country. Threatening this sector puts unnecessary and harmful pressure on the many workers, many of whom are women and women of color, that support economic growth for the United States.
Looking Ahead
The American economy must center the well-being of U.S. families. Higher tariffs will not serve the interests of most families, but especially of families with young children and the child care providers who are tasked with caring for them. Families of young children and our care workforce are some of the most economically vulnerable members of U.S. society. The federal government should be working in their best interests to support future generations of Americans, and these tariffs are counterproductive to those goals.
Tags: child tax, childcare, child care crisis, tariffs